Temba Nolutshungu states that “the degree to which governments allow individuals to exercise economic freedom will determine their economic outcome”.

Countries with low levels of Economic Freedom impose complex regulations and policies that make it difficult for entrepreneurs to start and grow new businesses. This results in fewer jobs and less wealth for the society.

Countries with high levels of Economic Freedom make it easy for entrepreneurs to start businesses, businesses to grow, and for employers to hire new staff. Therefore they generally have more wealth, more jobs and more opportunities for their citizens.

Economic Freedom is also strongly correlated with a country’s levels of wealth and prosperity. Generally speaking, the higher the level of a country’s economic freedom, the wealthier its citizens are are.

Why Economic Freedom matters to Entrepreneurs

Countries with high levels of economic freedom make it easier for entrepreneurs to start and grow new businesses. Countries with low economic freedom (corruption, poor rule of law, excessive regulations, complex laws) make it more difficult for people to start businesses. As a result, these countries are often poorer and less developed than countries with freer economies.

Measuring Economic Freedom

Two major think tanks actively measure and report on Economic Freedom around the world. The Fraser Institute, based in Canada, and the Heritage Foundation, based in the United States.

Authored by economist Eamon Butler, the book explains the core principles by which free societies work. It details the essential foundations of a free society, including free enterprise, trade, property rights, justice, and the moral and economic benefits of freedom.